Easiest way to make overpayments on a Barclays/Woolwich mortgage?

Morgage_Confused

No...via the "mortgage current account" its at SVR not the mortgage interest rate. (assuming its not an offset).

Its just the smaller overpayments that can be clawed back. Once they have been applied to the mortgage to recalculate monthly payments though they are gone forever.

Morgage_Confused

Sorry did we just say the same thing.

billa_champion

Morgage_Confused wrote: »

......dont touch this account. Its an overdraft facility to borrow back any capital paid off the mortgage.

Hi can you please explain in layman terms?:o I'm confused! I switched all my DDs, salary etc into this account as I was told that this is the account we HAD to pay out of and now you have me worried. (there were other reasons too - nothing sinister! - but not relevent)

billa_champion

Morgage_Confused wrote: »

Its 3x your normal payment and a re-calculation is done and payments reduced.
Less than 3x then it reduces balance, payment stays same, term reduced, (this can also be borrowed back at no cost, so similar to mini offset)

p.s. If anyone finds anything different to the above please post as it took me ages to get that info and the call center in Mumbai always tells a different story...lol

Hmmm, those guys give me a different answer everytime too! I was told that the OP can be used to reduce payment or term. Never mentioned the 3x rule!
BTW, OP I have set up a standing order to overpay - I was told by the call centre its the easiest way.

mgdavid

billa_champion wrote: »

Hi can you please explain in layman terms?:o I'm confused! I switched all my DDs, salary etc into this account as I was told that this is the account we HAD to pay out of and now you have me worried. (there were other reasons too - nothing sinister! - but not relevent)

...but you said in post 1 'this is an account I will never use'
so which bit is true?

I presume you checked the mortgage agreement to confirm that there is no limit to either quantity or amount of overpayments per year? as some Barclays mortgages do have limits.

picardygirl

Barclays premier customers can view their mortgage account online ..... and are able to make overpayments on line. There is a function which says "service my mortgage" where payments can be made, dont think you can set it up to make a regular overpayment..... but the simple way of doing that would be to set up a standing order to go into your mortgage account maybe?!

It is good to see the payment go down each month albeit 2-3 working days after the 16th of the month though ..... but a bit gutting on the 1st of the month when the interest is added

Spiggle

Hi,

I have had a Woolwich/Barclays mortgage for a long time. I pay by standing order every month which is a payment consisting of the standard payment plus OP. I set this up by ringing Woolwich and getting the sort code, account no. etc. and then setting up the SO myself.

This was done after having the motgage for many years so perhaps you will need to pay by direct debit for a while though.

My OPs have not affected the 'official' term in any way. Annual statements still note the original term end date. I will see in a month or so whether the monthly standard payment has been reduced. It wasn't last October.

The mortgage current account should not be used. It is effectively a facility to borrow so you will pay interest on spending. I have just filed away everything to do with the account.

You must have been given bum info on where the mortgage payment has to come from. I no longer have a Barclays current account and pay monthly from my first direct current account.

Hope that helps,
Spigs

Morgage_Confused

Yes its very annoying whenever you ring up and hear the indian accent and realise its Mumbai. Occasionally you get someone in the uk and they are very clued up and answer any mortgage questions accurately.
The Mumbai call center basically gives very inaccurate info.

Im pretty sure the annual statement also includes a recalculation, and hence a lowered monthly payment if you have made any overpayments during the year.

Its easy to put your payments back up though. I have a fixed monthly payment, which is over and above my contractual payments, and I also make ad hoc overpayments in branch.

I dont believe anyone is paying their mortgage from the "mortgage current account" doesnt sound right.

I have also heard Barclays premier customers can view their mortgage account online...picardygirl are you sure its not an offsett mortgage?

picardygirl

Morgage_Confused wrote: »

I have also heard Barclays premier customers can view their mortgage account online...picardygirl are you sure its not an offsett mortgage?

Definitely not an offset mortgage ..... its a fixed rate mortgage (which is coming to an end soon) scarey times, fix again or go onto SVR and watch the interest rates very closely !

getmore4less

I would have to dig out the letter to remind the exact changes to the T&C's.

Barclays changes the rules for payment adjustments because when rates rise the old rules would hit them with loads of complaints.

Basicaly the old rules were once a year(soon) which is fine when rates go down you overpay, when rates go up you are underpaying till the adjustment.

I think you can still have a non reducing payment so it never goes down but WILL go up is a recalculation requires a bigger payment probably based on the original term where overpayments are involved.

As with any read of T&C's we interprit them based on our own circumstances and don't always realise thei implication for others or changes to our own. always worth keeping them handy,

DO NOT throw them out you never know if you might need to refer to them especialy if you have BBBR linked to BBR and barclays decide to introduce spread.